Question

"The potentially valid arguments for tariff protection-military self-sufficiency, infant industry protection, and antidumping-are also the most easily abused." Why are these arguments susceptible to abuse? Essay Toolbar navigation B I s LUI E := A A

Answer 1

The potentially valid arguments for various protection are as follows:
Tariff protection: the tariff barriers remains in place even after making the trade policies or tariffs easier to pay. It has the tendency of being of being in its place, whether the tariffs are reduced or the policies governing the barriers are made lenient. Making policies lenient will result in a relaxation for trade initially but in the long run process the barriers remain intact.
Military self-sufficiency: making the military strong and self sufficient results in reducing subsidies and increasing the tax burden on the public. Making the financial stability in the economy ultimately results in cutting the money used in one sector and using that amount of money for making another one strong.
Infant industry protection: the nascent industries do not have the resources for economies of scale which their previous older competitors from various countries had, which is needed to be protected until the recent ones can achieve the same economies of scale which the earlier ones once had.
Antidumping: it is the protectionist tariff which the government can impose on the foreign imports of the country which it assumes are priced much below from the fair market value. It blocks the imports which are sold much below the cost of production through imposition of tariffs which increase the prices of the imports for reflecting their cost of production.